Guide to Student Loans and Paying Rent
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Can You Use Student Loans for Rent?
Tuition and fees Books and supplies A laptop or desktop computer Housing, whether that means an on-campus dorm or off-campus apartment Utilities Transportation Meal plans Groceries Living expenses
Using Federal Loans to Pay Rent
Using Private Loans to Pay Rent
Can You Only Use Student Loans for On-Campus Rent?
Alternatives to Using Student Loans for Rent Payment
Build your savings. If you can spend some time saving for college before you attend, you may have money in your bank account to help cover your rent — or at least reduce the amount you need to borrow in student loans. Take on a part-time job. Working while you’re in school could help you earn enough to cover part or all of your rent payments. If you have financial need, you might qualify for a job through the work-study program. Alternatively, you could look for part-time jobs on- or off-campus, or search for online opportunities to make money. You may be able to find high-paying jobs for college students that cover part or all of your housing costs. Opt for on-campus housing. Compare the costs of living in a dorm with renting an off-campus apartment carefully to see which one is more affordable. With rents rising across the country, a dorm could be the less expensive choice. Plus, dorms typically come already furnished and don’t require you to pay for utilities.
How Does Using Student Loans for Rent Affect You?
Pros and Cons of Using Student Loans to Pay Rent
Access funds you need. Student loans can enable you to live on or near campus. They provide you with the funding you need to pay for rent and other living expenses. You may be eligible for subsidized loans. If you have financial need, you may qualify for federal subsidized loans, which don’t accrue interest until your grace period ends. You can use student loans for an on-campus dorm or off-campus apartment. You can live on-campus or off-campus and use the loans to pay your rent either way. Loan debt will impact your credit. Taking on debt will affect your credit and could decrease your credit score. That said, the impact could be positive in the long run if you consistently make on-time payments. The landlord may require a cosigner. If you’re relying on loans to pay rent rather than a source of income like a job, your landlord might ask for a cosigner on your lease agreement. You’ll end up paying back more than you borrowed. Most student loans accrue interest from the date of disbursement, meaning you could end up paying back significantly more than you borrowed in the first place.
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